Two U.S. tobacco companies, Phillip Morris and RJ Reynolds, used aggressive, long-term strategies, beyond export sales, to capture new international tobacco markets which privatization had expanded from 60% closed to 95% open.
Their parent companies, PM and RJR Nabisco, both fared well from outstanding quarterly profit increases from their international tobacco operations, more than from their other divisions.
In the U.S. PM lowered Marlboro cigarette prices to increase U.S. market share, and bolster Marlboro's image for global marketing; and increased U.S. production by 50% for overseas sales.
RJR and PM each built, bought or acquired equity in factories in Russia, East Germany, Hungary and Poland.
RJR bought factories in Turkey and acquired equity in the Ukraine and Kazakhstan.
PM acquired equity in Czechoslovakia.
In Lithuania PM bought a monopoly tobacco company protected by high import duties, which gave PM contacts into Estonia, Latvia, Belarus, and Russia.
It was the biggest initial western investment in the Baltic States.
In Russia PM undercut prices of Russian businesses, and accepted barter payment for PM's first major import of cigarettes to quell "tobacco riots".
In Kazakhstan RJR spent $200m over 5 years to modernize a factory, and spent $25m to improve quality and quantity of Kazakhstan's tobacco crop.
In East Germany PM improved its existing brands and added Marlboro production.
In Hungary PM increased cigarette exports to Ukraine.
In China RJR established a joint venture.
PM established a joint venture with the state tobacco company.
In Poland PM offered $200m to modernize a factory.
